KUALA LUMPUR: CIMB Retail Research has advised investors to sell MULTI-PURPOSE HOLDINGS BHD [] (MPHB) into strength. At RM2.18, it is trading at a FY11 price-to-earnings of 14.5 times and price-to-book value of 1.1 times.
It said on Tuesday, Aug 17 the countertrend rebound stopped near its 61.8% FR level, suggesting that there is a strong resistance here. The consolidation will likely persist a while longer and there is a risk of a potential pullback towards the RM2.04 and RM1.90 support levels.
'MACD is poised for a negative crossover while its RSI is also dwindling. These do not bode well for a strong recovery.
'Traders should do well selling into strength. We will stick with the bears' camp as long as prices remain below its recent high of RM2.26,' it said.
It said on Tuesday, Aug 17 the countertrend rebound stopped near its 61.8% FR level, suggesting that there is a strong resistance here. The consolidation will likely persist a while longer and there is a risk of a potential pullback towards the RM2.04 and RM1.90 support levels.
'MACD is poised for a negative crossover while its RSI is also dwindling. These do not bode well for a strong recovery.
'Traders should do well selling into strength. We will stick with the bears' camp as long as prices remain below its recent high of RM2.26,' it said.
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